Companies Act, 2017

PART-VII

ACCOUNTS OF COMPANIES

From: 2023-11-01 - To: 0000-00-00 227. Contents of directors’ report and statement of compliance- (1) The directors shall make out and attach to the financial statements, a report with respect to the state of the company’s affairs and a fair review of its business, the amount (if any), that the directors recommend should be paid by way of dividend and the amount (if any), they propose to carry to the Reserve Fund, General Reserve or Reserve Account. (2) In the case of a public company or a private company which is a subsidiary of a public company, the directors report, in addition to the matters specified in sub-section (1) must state- (a) the names of the persons who, at any time during the financial year, were directors of the company; (b) the principal activities and the development and performance of the company’s business during the financial year; (c) a description of the principal risks and uncertainties facing the company: (d) any changes that have occurred during the financial, year concerning the nature of the business of the company or of its subsidiaries, or any other company in which the company has interest; (e) the information and explanation in regard to any contents of modification in the auditor’s report; (f) information about the pattern of holding of the shares in the form specified; (g) the name and country of origin of the holding company, if such company is a foreign company; (h) the earning per share; (i) the reasons for loss if incurred during the year and future prospects of profit, if any; (j) information about defaults in payment of any debts and reasons thereof; (k) comments in respect of adequacy 1[***] internal financial controls; (l) any material ehanges and commitments affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statement relates and the date of the report; 2[and] 3[***] (m) any other information as may be specified. (3) In the case of a listed company, the business review’ must, to the extent necessary for understanding the development, performance or position of the company’s business, include- (a) the main trends and factors…